Bloom's current stewardship over these Funds and the resulting
performance does not suggest long-term value creation for unitholders
TORONTO, Aug. 7 /CNW/ - Citadel Fund Administrator ("Citadel"), the
administrator of the Citadel Group of Funds (the "Funds"), one of Canada's
largest managers of closed end funds, issued the following statement in
response to the announcement by Brompton Administration Limited and Bloom
Investment Counsel, Inc. that unitholders have delivered requisitions for
meetings of 5 of the Funds, being Citadel Diversified Investment Trust,
Citadel S-1 Income Trust Fund, Citadel HYTES Fund, Citadel SMaRT Fund, Series
S-1 Income Fund and Citadel Premium Income Fund.
Citadel and the Trustee of the Funds are reviewing the requisitions.
After receiving such legal and financial advice as may be appropriate,
together with recommendations from the Independent Review Committee of the
Funds, Citadel will issue a more detailed response.
The proposed reorganization of the Funds by Citadel is the way forward
Citadel wishes to remind unitholders that its proposed reorganization
plan for 8 of the Funds significantly increases long-term value for
unitholders. In the short period of time that Citadel has been the
administrator of the Funds, it has taken and formulated plans for several
actions to ensure long-term value creation.
- Retaining Jarislowsky Fraser, Canada's largest independent investment
counsel firm, to serve as the investment manager for the proposed new
combined fund, Citadel Income Fund. Bloom's current stewardship of
several of the Funds and the resulting performance does not suggest
long-term value creation for unitholders.
- Proposing an expanded investment strategy for the Citadel Income Fund
which will include investment in a broad variety of income producing
securities, including income trusts, common shares and debt
- Offering unitholders of the 8 Funds the right to redeem their units at
the time of the reorganization for an amount based on the net asset
value per unit of the applicable Fund less applicable fees and
charges, and offering unitholders of the Citadel Income Fund the right
to redeem their units in 2010 and subsequent years.
- Proposing additional benefits for unitholders of the Citadel Income
Fund, such as enhanced liquidity, a reduction in operating costs, no
"permitted merger" provisions and an entitlement to warrants to
acquire additional units.
Unitholders will have their say - proposed meeting postponed
Citadel believes that Citadel's proposed reorganization is in the best
interest of unitholders and significantly increases long-term value for
unitholders. As previously announced by Citadel, unitholders of the 8 Funds
involved in the proposed reorganization will have the opportunity to consider
and vote at special meetings of unitholders. However, Citadel has requested
that the Trustee temporarily postpone these meetings, which had been planned
for September 3, 2009, to permit Citadel and the Trustee to complete their
review of the requisitions.
For further information:
For further information: Kingsdale Shareholder Services Inc. at
1-888-518-6828; Media Contact: Janet Craig, Kingsdale Communications Inc.,
(416) 867-2315, firstname.lastname@example.org